Partial Sale of Royalty Interest

RNS Number : 9790A

Red Rock Resources plc

10 April 2012

 

RED ROCK RESOURCES PLC

Partial Sale of Royalty Interest

Dated:10 April 2012

Red Rock Resources plc ("Red Rock" or the "Company"), the gold mining and exploration company with projects in Greenland, Colombia and Kenya, and interests in steel feed, uranium, and rare earths, reports further, following the earlier announcement made on 6 February 2012, on the proposed sale to Anglo Pacific Group plc ("Anglo Pacific")(LSE:APF)(TSX:APY) of a 50% interest in the Company's 1.5% gross production royalty over any production from the Mt Ida iron ore project.

Following successful due diligence inquiries, the Royalty Sale Agreement was signed between Red Rock and Argo Royalties Pty Ltd, a member of the Anglo Pacific group, and the transaction will be completed conditional upon approval by the Foreign Investment Review Board of Australia and upon signature by Jupiter Mines Ltd of a deed of assignment of the sold interest.

Red Rock knows of no reason why these conditions would not be fulfilled, and expects the transaction to complete during April.

The Tranche 1 payment of U.S.$6,000,000 for 0.3% of the GRR will be settled by the payment of U.S.$3,899,999.81 less any applicable costs and the issue and allotment to Red Rock of 416,161 new Anglo Pacific shares.  These shares were valued at $1,999,720 at the close of trading on 5 April 2012.

The remaining tranches of the acquisition total US$8 million and will be paid as follows:

·     Tranche 2: US$4 million payment for a further 0.225% GRR following the results of a positive definitive feasibility study (DFS), a formal decision to mine and that 20% of the pre-production capital costs outlined in the DFS are provided for.

·     Tranche 3: US$4 million for a further 0.225% GRR following the commencement of commercial production, taking the total to 0.75% GRR.

Updates on the Company's activities are regularly posted on its website, www.rrrplc.com.

Enquiries:

Andrew Bell	020 7402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	020 7402 4580 or 07757 660 798	Red Rock Resources plc	Public and Investor Relations
Philip Davies/David Porter	020 7444 0800	Religare Capital Markets	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker

 

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